SEC Issues Innovative Exemption Allowing Tokenized US Stock Trading

The SEC issued an innovative exemption on September 17, providing conditions for validating the efficiency of DeFi blockchain, which is effective for five years until September 17, 2031. Under this framework, tokenized securities venues and specific liquidity providers can operate tokenized US stock trading without registering as exchanges or dealers. Christopher Montagano, Chief Legal Officer of Orca, stated that this exemption is designed specifically for AMMs but does not constitute a ruling on DeFi; relevant parties must still comply with sanction rules and obtain issuer consent to distinguish it from unlicensed DeFi. Orca has been involved in discussions with the SEC since 2025 and began trading tokenized stocks in November of the same year.

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